Customers with a compatible Android smartphone, an Optus postpaid mobile account, an NFC-enabled SIM and the Cash By Optus app, will be able to load up to $500 at any one time and make contactless purchases under $100 at retailers that accept Visa payWave.

Purchases of up to $250 can also be made online or over the phone.

The app can be used without being opened, with Optus stating it works on most phones even if the battery is flat.

In the event of a lost phone, Optus states it can close the Cash by Optus account, with users able to request return of their balance. Users can also cancel their account at any time or dispute transactions which aren’t recognised.

“There are already nearly one million Optus postpaid customers with compatible devices who could download this app, get the SIM and make purchases using Cash by Optus,” commented Ben White, Optus vice president mobile marketing.

“We’re the first Australian telco to launch a mobile payments app, and because it’s compatible with many of the latest Android devices and can be linked to any Australian bank account, we’ve got a huge opportunity to bring this technology to a lot of people.”

White stated Cash by Optus is “a natural evolution for Optus”, adding it is the telco’s “first step towards launching future contactless applications in areas like public transport”.

“Australians never leave home without their mobiles, so it makes sense to build this technology into smartphones now,” he commented.